Financial institutions have owner-occupancy in a stranglehold

An explanation for the recession in the Dutch housing market

Report (2014)

Authors

Department
OTB Research for the Built Environment (Architecture and the Built Environment) (TU Delft)
Copyright: OTB Research for the Built Environment
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Published Date

05-02-2014

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Source:

Working Papers 2014-04

Faculty

Architecture and The Built Environment

Department

OTB Research for the Built Environment

Abstract

Like many other West-European countries, the Dutch housing market fell into a depression since the fall of Lehman Brothers at the end of 2008 and the credit crunch started. After 2010, many housing markets in Europe recovered from the financial crisis and experienced growing house prices again. This was however not the case in the Netherlands. The housing market did not recover and was hit even more in 2012. This contribution gives an explanation for this remarkable event. It’s argued that the operation of several important financial institutions and the housing policy of the Dutch government gives a plausible explanation for the problems on the Dutch housing market and the fall of Dutch prices more specific.